TransCanada Corp. plans to invest about US$1 billion in a new natural gas pipeline in Mexico.
The company said it has been awarded a contract to build, own and operate the pipeline by Mexico’s federal power company, the Comision Federal de Electricidad or CFE.

The 530-kilometre-long El Encino-to-Topolobampo pipeline will have a contracted capacity of 670 million cubic feet per day and is supported by a 25-year natural gas transportation services contract.

TransCanada is bidding on a number of CFE proposals. The company has already built and is operating the Guadalajara and Tamazunchale pipelines and will soon break ground on a Tamazunchale pipeline extension.

TransCanada Corp., facing opposition from campaigners including actress Daryl Hannah to its planned Keystone XL oil pipeline, will be audited by Canadian regulators to check whether it meets safety and management standards.

The review involves all units regulated in Canada including the 2,763-kilometre Keystone XL line between Canada and the U.S., according to a letter sent by the National Energy Board to TransCanada Chief Executive Officer Russ Girling. The regulator published the letter dated Oct. 30 on its website.

“The Board expects TransCanada to demonstrate, and provide adequate supporting documentation of, the adequacy and effectiveness of its integrity management program as well as its compliance with” Canadian rules, Secretary Sheri Young wrote.

The NEB will study management, company internal audits, training, inspections and corrective actions, the letter said.

Texas landowners raised objections to the Keystone XL project in a court hearing last month, citing property rights. Actress Hannah echoed concerns that the pipeline may contaminate water in Nebraska’s Ogallala Aquifer in an opinion piece published in the Guardian newspaper on Oct. 17, saying she was arrested while trying to block excavators building the line.

“The audit will focus on TransCanada’s ongoing and completed remediation measures referenced in the Board’s compliance letter to verify that they adequately address regulatory non-compliances and mitigate any safety threats to people or the environment,” the regulator said.

TransCanada on Oct. 30 said third-quarter profit fell 4.4% as it transported less gas and carried out maintenance at some power plants. Company executives weren’t available for comment when Bloomberg called out of regular office hours.